LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on engineering services firm Renew Holdings from 1,250.0p to 1,200.0p on Wednesday following the group's capital markets day last week.
Berenberg said Renew's CMD focused on growth opportunities in its existing end-markets, the collaboration efforts between operating brands within the group and reminded investors of where the M&A focus was for management.

The German bank also noted that following this "timely revisit" of the opportunity for the group, it was "pleasing" that Renew announced its third acquisition in the last 12 months - buying Excalon Holdings for up to £26.0m of consideration for underlying earnings of roughly £3.0m.

"The acquisition opens up the attractive, structural growth energy transmission and distribution market for the group, while adding yet another speciality to the group's evolving stable of high-quality operating companies," said the analysts.

Berenberg, which has a 'buy' rating on the stock, updated its forecasts for the stock following the deal, increasing underlying earnings by approximately 4% in FY25 and FY26 and earnings per share by about 3-4%. On its revised forecasts, Berenberg said Renew trades on 14x FY24 price-to-earnings ratio.

























Reporting by Iain Gilbert at Sharecast.com

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